Question: I need help with this question please Problem 2-24A Multiple Departments; Applying Overhead [LO2-1, LO2-2, LO2-3, LO2-7] High Desert Potteryworks makes a variety of pottery
I need help with this question please
Problem 2-24A Multiple Departments; Applying Overhead [LO2-1, LO2-2, LO2-3, LO2-7]
| High Desert Potteryworks makes a variety of pottery products that it sells to retailers such as Home Depot. The company uses a job-order costing system in which predetermined overhead rates are used to apply manufacturing overhead cost to jobs. The predetermined overhead rate in the Molding Department is based on machine-hours, and the rate in the Painting Department is based on direct labor-hours. At the beginning of the year, the company's management made the following estimates: |
| Department | ||
| Molding | Painting | |
| Direct labor-hours | 33,500 | 56,500 |
| Machine-hours | 86,000 | 39,000 |
| Direct materials cost | $190,000 | $200,000 |
| Direct labor cost | $273,000 | $522,000 |
| Fixed manufacturing overhead cost | $197,800 | $474,600 |
| Variable manufacturing overhead per machine-hour | $3.00 | - |
| Variable manufacturing overhead per direct labor-hour | - | $5.00 |
| Job 205 was started on August 1 and completed on August 10. The company's cost records show the following information concerning the job: |
| Department | ||
| Molding | Painting | |
| Direct labor-hours | 81 | 127 |
| Machine-hours | 390 | 72 |
| Materials placed into production | $944 | $1,120 |
| Direct labor cost | $700 | $970 |
| Required: |
| 1. | Compute the predetermined overhead rate used during the year in the Molding Department. Compute the rate used in the Painting Department. (Round your answers to 2 decimal places.) |
| 2. | Compute the total overhead cost applied to Job 205. (Round "Predetermined overhead rate" to 2 decimal places, other intermediate calculations and final answers to the nearest dollar amount.) |
| 3-a. | What would be the total cost recorded for Job 205? (Round "Predetermined overhead rate" to 2 decimal places, other intermediate calculations and final answers to the nearest dollar amount.) |
| 3-b. | If the job contained 37 units, what would be the unit product cost? (Round "Predetermined overhead rate" and final answer to 2 decimal places and other intermediate calculations to the nearest dollar amount.) |
| 4. | At the end of the year, the records of High Desert Potteryworks revealed the following actual cost and operating data for all jobs worked on during the year: |
| Department | ||
| Molding | Painting | |
| Direct labor-hours | 28,000 | 58,000 |
| Machine-hours | 85,700 | 24,700 |
| Direct materials cost | $161,500 | $415,000 |
| Direct labor cost | $108,000 | $436,000 |
| Manufacturing overhead cost | $464,310 | $740,800 |
| What was the amount of underapplied or overapplied overhead in each department at the end of the year? (Round "Predetermined overhead rate" to 2 decimal places, other intermediate calculations and final answers to the nearest dollar amount. Select "None" for no effect (i.e., zero variance).) | |
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